November 10, 2021
People should enter changes to their income in the IRS' Child Tax Credit Update Portal by November 29 for changes to be reflected in their December payments. Once the update is made, the IRS will adjust the payment amount to make sure people receive their total advance payment for the year. In the case of married couples, if one spouse makes the income update, it will apply to both spouses and could impact both spouses' future monthly advance payments of the child tax credit.
Who should report income changes in the portal?
Reporting income changes using the Child Tax Credit Update Portal can help people make sure they get the correct amount of advance child tax credit payments during 2021, especially people who want to raise or lower their monthly payments because their 2021 income changed substantially from 2020.
While large changes in income can raise or lower monthly payments in many cases, small changes will not normally impact the payment amount and don't need to be entered.
Changes made before midnight on November 29 will only impact the December 15 payment, which is the last scheduled monthly payment for 2021. Payments in 2021 could be up to $1,800 for each child under age 6 and up to $1,500 for each child ages 6 through 17.
People then need to claim the remaining portion of their child tax credit on their 2021 tax return.
Who may qualify for a bigger payment?
People currently receiving monthly payments below the maximum may qualify to have their payments increased in some cases, such as if they experienced a job loss during 2021 or if for some other reason they are receiving substantially less income. If the reduction in income is large enough, reporting the change now could increase the amount of their advance child tax credit payments for the rest of this year.
A decrease in income will not increase the payment amount for people who are already receiving the maximum payment.
Most people are receiving half of the total credit through the advance monthly payments, so any changes they enter in the portal will increase or decrease their monthly payments to make sure they receive half of their total expected credit before the end of 2021.
Who should have their payments reduced?
People whose income increased substantially in 2021 should consider using the Child Tax Credit Update Portal to update their income and have their payments reduced, especially if they are now receiving the maximum monthly payment and expect to qualify for less than the full credit when they file their 2021 federal tax return. Topic C of the IRS frequently asked questions has more information on calculating the child tax credit. People who qualify for less than the full amount should see QC 4 and QC 5.
Using the portal to report income changes
Only people who are already eligible for and receiving advance child tax credit payments based on their 2020 tax return can use the portal to update their income. Someone who filed a joint return for 2020 can only update their income if they plan to file a joint return for 2021 with the same spouse. IRS representatives can't process income changes over the phone or at Taxpayer Assistance Centers. The portal will acknowledge the change but will not display the change after an income update is made, and IRS representatives won't be able to confirm an update.
Additional Resources: Advance Child Tax Credit 2021